Optimizing Quality Management Systems in Manufacturing: Internal and External Defects Minimization Strategies Case
Optimizing Quality Management Systems in Manufacturing: Internal and External Defects Minimization Strategies Case
Optimizing Quality Management Systems in Manufacturing: Internal and External Defects Minimization Strategies Case
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Abstract
This study examines the efficacy of the Quality Management System in a paint manufacturing setting, with a specific
emphasis on reducing both internal and external defects. The research examines the dedication of senior management,
the correlation between cost and quality, and obstacles to the sustainable operation of the Quality Management System
(QMS) in order to tackle the ongoing problem of faulty products. The study employs a mixed-method approach,
combining quantitative analysis of employees' perspectives from different branches with qualitative evaluation of
internal rejects and customer complaint processes. The findings indicate that there are varied opinions about the level
of dedication from senior management towards the Quality Management System. It is also evident that there are
significant financial consequences associated with quality failures. Additionally, there are notable obstacles that hinder
the long-term viability of the QMS, such as employees' comprehension and training. Suggested measures involve
increasing the involvement of senior executives, enhancing the training program for Quality Management System,
and establishing well-defined channels for communication. Future research should expand the range and
comprehensiveness of Quality Management System (QMS) studies, investigating different models and their influence
on staff training, commitment from leadership, and organizational culture in order to strengthen the effectiveness of
QMS.
Keywords
Quality Management System, Operations Efficiency, Internal Defects, External Defects, Organizational Performance
1. Introduction
Every year, the market experiences a number of product recalls and consumer advisories concerning manufactured
goods that display notable defects (Mukherjee et al. 2021; Nicol 2021). These products, which have been identified
as potentially dangerous or not meeting the established quality standards, need to be removed from the market.
Afterward, they are sent back to the manufacturing entity for either replacement or refund, guaranteeing consumer
safety and compliance with quality standards. Wolniak (2019) and later Sanchez-Lizarraga et al. (2020), creating a
management system based on the criteria of International Organization and Standardization (ISO) 9001 offers a basis
for an organization to define customer requirements and use the principles of customer focus, process approach and
evidence-based decision-making to meet and develop these requirements and improve (Salim et al. 2019), therefore
countering the production of defective products. This implies that the organization has guaranteed that the client
requirements are identified and that the structure of the item meets the necessities. The controls, screens and measures
are the procedures utilized all through the company to ensure they are working as arranged, if not to address any issues
(Mok and Chowdhury 2019).
The objectives of this study are established to achieve the following: (1) To identify and understand the commitment
of senior management towards the Quality Management System, (2) To assess the relationship between cost and
quality in the context of an effectively implemented Quality Management System within the organization, and (3) To
identify barriers that impede the sustainable operation of a Quality Management System.
Building on these objectives, the study aims to address and provide answers to the ensuing research questions: (1)
How does the commitment of top management influence the effectiveness of the Quality Management System? (2)
What is the impact of an efficiently applied Quality Management System on the quality-related costs within an
organization? And (3) What are the primary factors that obstruct the sustainable implementation and operation of a
Quality Management System?
2. Literature Review
The long-term success of a business depends on its ability to provide high-quality products and services. The
International Organization (ISO) assists organizations worldwide by utilizing ISO 9000 as a universal quality standard
guideline. Implementing a Quality Management System (QMS) ISO 9001 enhances the performance of an industry
by promoting a systematic approach and meeting both industry standards and customer requirements. This contributes
to the production of products that meet parameters such as comfort, safety, and quality (Ingason 2015). The purpose
of the research is to evaluate the effectiveness of the quality management system in identifying and addressing both
internal and external failures. This is achieved through the analysis of the writing, which helps to identify the areas
where the issue may be located within the framework according to Ramphal (2015).
The environment of an organization always influences any course of action taken. The organization's scope and
direction are determined by the environment in which it operates (Saleem 2011). ISO 9001 clause 4 focuses on the
context of the organization hence directly related to internal and external customer satisfaction. The organization must
isolate, review, and monitor all internal and external forces that directly affect its ability to achieve the intended
purpose of its Quality Management System (QMS).
One of the most important aspects of ISO 9001:2015 is customer satisfaction, and performance evaluation is an
essential component in gaining an understanding of and successfully meeting the expectations of customers. There
are a number of approaches that are utilized in order to ascertain and guarantee that customers are content with the
products and services offered by the organization (Nolan 2018). These approaches include warranties, feedback,
surveys, and reports.
When it comes to the successful implementation of quality management practices, the inclusion of workers is widely
acknowledged as a crucial determining factor (Seyedi et al. 2019; Stanojeska et al. 2020; Khalid et al. 2022).
According to Bakotić and Rogošić (2015), the participation of workers is an essential component in the successful
implementation of a process approach, a system approach to management, continuous improvement, and a factual
approach to decision-making within an organization.
2.4 Managing risks within quality management systems (QMS) is the sixth point.
Introducing a more nuanced understanding of risk, ISO 9001:2015 relates it to the uncertainty that comes with
achieving quality management system objectives (Shields 2023). Ispas et al. (2023) stress that the standard encourages
organizations to identify, analyze, and respond to opportunities and risks in a proactive manner. It does this by
promoting a risk-based thinking approach (Ispas et al. 2023; Dellana et al. 2019). This strategy encompasses every
aspect of the organization, thereby improving the capacity for decision-making and the accomplishment of goals
through its implementation (Tomic and Spasojevic Brkic 2019).
Within the framework of the quality control program, it is of the utmost importance to effectively communicate risks,
both domestically and internationally (Mostafa 2019; Ab Wahid 2019; de Carvalho and Dumke de Medeiros 2021).
One of the most important aspects of a comprehensive risk management strategy is making certain that all relevant
personnel are kept informed about residual risks even after risk management measures have been put into place.
3. Methodology
The study makes use of a mixed-methods approach, which incorporates both qualitative and quantitative research
methodologies throughout its course. For the purpose of providing a structured and statistical analysis of the data, the
quantitative approach is utilized to quantify opinions, thoughts, and other defined variables, according to Wisdom and
Creswell (2013). When compared to the quantitative approach, the qualitative approach is utilized to acquire a
profound comprehension of individual experiences, thoughts, opinions, and trends. This approach provides a
perspective that is more nuanced and interpretive as noted by Wisdom and Creswell (2013). For this study, secondary
data from reports reflecting the internal and external failure cost from four branches, namely Johannesburg (JH), Cape
Town (CT), Durban (DBN) and Port Elizabeth (PE), were reviewed and analyzed.
The research sample is comprised of fifty employees who were chosen at random from a total of four different
branches. During the process of analyzing the data, the objective is to provide a meaningful description, demonstration,
or summary of the information, which will allow for the identification of patterns and insights as explained by
Willemse (2009). When it comes to this particular study, descriptive statistics are utilized to analyze and interpret the
data, thereby presenting the findings in a manner that is both clear and understandable.
The study used a structured questionnaire with three sections to holistically assess the organization's Quality
Management System (QMS). Section 1, "Quality Management System (QMS) Sustainability and Policy," examined
QMS's longevity and guiding principles, including Q-1's sustainability, Q-2's quality policy support, Q-3's promotion
of continual improvement, Q-4's practice, and Q-5's impact on improvement programs. Section 2, "QMS Efficacy and
Organizational Learning," assessed QMS's ability to enable improvements (Q-6), provide tools (Q-7), reduce rejects
(Q-8), learn from mistakes (Q-9), and address recurring issues (Q-10). Section 3, "Organizational Culture and
Engagement in QMS," examined QMS's cultural aspects, including a quality culture (Q-11), its integration throughout
the organization (Q-12), open and honest communication (Q-13), senior management involvement (Q-14), and staff
QMS training (Q-15).
Participants could rate their agreement with the statements on a 5-point Likert scale from 'Strongly Disagree' (1) to
'Strongly Agree' (5). This scale helped capture employees' complex views on the company's QMS implementation and
related issues.
The results are presented in the form of graphs and tables, which represent the data that was collected and provide a
visual interpretation of the findings. A validation of the analysis that is presented in this paper is carried out with the
assistance of Microsoft Excel 2016, which guarantees the accuracy and dependability of the findings.
Cape Town produced two rejects every other month from January to September, totaling 8. June saw three rejects, the
peak. Financial analysis showed that these internal rejects cost the Cape Town site R334,000 over five months,
meaning a monthly sales revenue loss of R69,000.
In contrast, the Durban site had only 3 internal rejects from January to September, a trend of one reject every third
month. These rejects at the Durban site cost R169,000 for three months, resulting in an R56,000 monthly sales revenue
loss.
Port Elizabeth had 6 internal rejects from January to June, one per month. This site had the second-lowest internal
reject rate. The financial impact was R225,000 over four months, with a potential monthly sales revenue loss of
R56,000.
Internal Failures – Rejects and Costs
The qualitative review included an examination of customer complaints processed through the organization's call
center and logged within the HEAT system. Each complaint undergoes a thorough laboratory evaluation to verify its
validity.
When a complaint is validated, the Site Field Technical Manager (SFTM) is responsible for initiating a
quarantine/withdrawal request, documented on a 'Faulty Product Quarantine & Withdrawal Notice', which is then
communicated to the National Field Technical Manager (NFTM) along with an initial investigation report.
Subsequently, the SFTM engages with the Development Manager to assess the feasibility of reworking the product.
The course of action is determined by the specific nature and severity of the non-conformance.
Conversely, if a complaint is deemed unjustified, the SFTM must relay the findings to the Technical Support Center
(TSC), which then informs and works with the customer to conduct further tests and finalize the investigation.
The analysis of complaint data indicated Johannesburg as the site with the highest number of logged complaints,
succeeded by Durban, Cape Town, and Port Elizabeth in descending order as shown in Figure 4 below. From January
to October, a total of 3,040 complaints were recorded across all sites, but only 32 were substantiated as faults
attributable to the company, leading to the withdrawal of the affected stock.
The results are consistent with previous studies and criticisms of ISO 9001:2015, as mentioned by Neely et al. (1995),
and later by Gryna and Juran (2001). According to this study, Company X's reputation improved after certification, as
depicted in Figure 2 (refer to Q-7), quality management system has successfully improved processes and product
quality.
Nevertheless, consumers are still receiving products of inferior quality due to the staff at Company X having a limited
comprehension of QMS. The lack of sufficient training and proper initiation into the system results in the continuation
of the same problems, as demonstrated by Figure 2 (refer to Q-8 and Q-10) and Figure 3 (refer to Q-15). Furthermore,
there has been an increase in failures at different company sites, which can be attributed to a lack of strict adherence
to QMS protocols.
The research identified significant barriers to the long-term viability of the Quality Management System (QMS), such
as employees' inadequate comprehension of the QMS, inadequate training, and inconsistent compliance with QMS
protocols. These challenges are worsened by differing interpretations of quality culture among different levels and
locations within the organization.
5.2 Recommendations
The study's findings and conclusions suggest the following ways to improve the QMS and organizational performance:
• Enhance senior management skills Prestige and dedication: Senior executives should participate more in
QMS initiatives. Actively participating in QMS activities, supporting quality improvement initiatives, and
communicating the importance of QMS in the organizational strategy can achieve this. This would boost top-
level dedication and promote excellence throughout the organization.
• Improve QMS training and understanding for staff: Ensure that all employees, especially new hires,
understand QMS principles, practices, and benefits through extensive training. Training should be ongoing
and flexible to meet changing standards and company needs. QMS execution and longevity require a well-
informed workforce.
• Clear communication channels: Open and transparent communication channels allow QMS process and
modification information to be shared freely. This will ensure that all employees understand quality
standards, their QMS responsibilities, and their role in the system's success.
• Regularly inspect and evaluate QMS: Regularly assess the Quality Management System (QMS) to identify
and fix inefficiencies. In order to prevent internal rejections and customer complaints, this should involve
investigating their causes. The Quality Management System will remain relevant and effective with regular
audits.
• Foster a high-quality, unified culture: Develop an organizational culture that values quality across all
departments. This involves incorporating quality goals into the corporate mission, rewarding quality
achievements, and encouraging proactive quality improvement.
• Maximize cost-quality trade-off efficiency: Examine the cost-quality relationship to find areas where cost
can be cut without compromising quality. Cost-effective quality control can boost efficiency and profitability.
• Take on Site-Specific Challenges: Address each location's unique challenges and shortcomings identified by
the internal failure analysis. Individualized approaches must be developed for each location to address
specific challenges and improve QMS efficiency.
To overcome the limitations, future research should broaden and deepen Quality Management Systems (QMS) studies.
The findings could be applied to Company X's employees or multiple organizations by increasing the sample size.
Comparing QMS models across settings can reveal best practices and adaptable principles. Data on Company X's
complaint resolution times will make the study more accurate and objective. QMS effectiveness must also be examined
in relation to staff training, leadership commitment, and organizational culture. Such extensive research would provide
valuable insights and practical solutions for improving QMS in organizations.
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Biographies
Mokete Zondo is a SHERQ Manager with experience in Automotive, Chemical and Manufacturing industries. He
leverages a diverse skill set to uphold the highest standards of Safety, Health, Environment, Risk, and Quality
management. He is holding a B-Tech and Post Graduate Diploma in Quality from the University of Johannesburg. He
is currently MBA candidate from the Johannesburg Business School, he is dedicated to expanding his leadership and
strategic management capabilities. He is a qualified Lead Auditor; he brings a meticulous approach to ensuring
regulatory compliance and implementing effective ISO management systems. He is a certified Train the Trainer for
the business, he has successfully imparted essential knowledge and skills to teams, fostering a culture of continuous
learning. He is a professional member of the South African Quality Institute (SAQI), he remains actively engaged in
the quality assurance community, contributing to industry best practices, and staying at the forefront of advancements
in the field.
Sambil C. Mukwakungu, an award-winning academic, has taught first-year Operations Management, Food
Production, and Quality Management at the University of Johannesburg. His love of teaching and learning has changed
at least one student's life each year. Service Operations Management, Lean Operations, Continuous Improvement,
business innovation, and higher education innovation are his research interests as a young researcher. He and his team
from the IEOM UJ Student Chapter received the 2018 IEOM Outstanding Student Chapter Gold Award for their
exceptional chapter activities and contributions to industrial engineering and operations management. He also won
Best Track Paper Awards at the 2016 and 2018 IEOM Conferences in Rabat, Morocco, and Paris, France. While
pursuing his PhD at the University of Johannesburg, he supervises Operations Management master's students.
Prof Nita Inderlal Sukdeo is currently an Associate Professor in the Department of Quality and Operations
Management within the School of Mechanical and Industrial Engineering at the University of Johannesburg, South
Africa. She obtained a master’s in quality from the Durban University of Technology and a PhD in Engineering
Management from the University of Johannesburg. She is an active researcher in the field of total quality management
and operations management. Her field of expertise also include advanced manufacturing technologies, smart factory,
Quality 4.0, quantitative analysis, quality management systems, quality auditing and risk assessment. She is a
qualified Lead Auditor, proficient in ISO standards and certification. She is chairperson and director of the Society
for Operations Management in Africa (SOMA), a professional member of the South African Society for Quality
(SASQ). She is an active participant and session chair of the IEOM Women in Industry and Academia panel session
Africa edition.
Prof. Charles Mbohwa is a Professor at the University of Johannesburg. He has a D Eng. from Tokyo Metropolitan
Institute of Technology, MSc in Operations Management and Manufacturing Systems from the University of
Nottingham and a BSc (honors) in Mechanical Engineering from the University of Zimbabwe. Prof. Mbohwa has been
a British Council Scholar, Japan Foundation Fellow, a Heiwa Nakajima Fellow, a Kubota Foundation Fellow and a
Fulbright Fellow. His research interests are in operations management, engineering management, project management,
energy systems and sustainability assessment. He has published books and more than 400 academic papers.